Inventory that doesn’t sell is known as Dead Stock. A business dealing with different category of products can say that a few items just go with no sell while some become the top-selling ones.
Businesses that don’t use an Inventory Management System often end up having useless dead inventory stocking in their warehouses. Dead Stock cost businesses a lot of money. Moreover, it takes valuable space which could have been to store high-selling products.
Reasons for Deadstock
Broken or malfunctioned products might end up being in the warehouse & turn to be the dead stock. This happens when your business lacks in the quality check process.
Low or No Demand
Just because market trends change like the weather, it is possible that you stock up a product which was in demand yesterday but is not selling today. When the product’s demand is not figured out correctly, you’ll end up bulking it. Thus, resulting in deadstock.
Bad Communication with the Suppliers
Miscommunication between the warehouse and supplier management team can result in great loss. So, not analyzing the need for the stocks coming in & not conveying the same to your suppliers can be the reason. If not needed stop the production or the supply!
HOW TO DEAL WITH
⚖️ Product Analysis
As a merchant, you should analyze which products are doing well and which are not before restocking or manufacturing them. Take into consideration each product and look for the reviews it is getting, the number of purchase it is having, etc.
Don’t stock up newly launched products in advance. Get a few quantities in hand, let it go out in the audience, if it works well, good (stock more). If not, good enough because you don’t have a large pile of it stored in your warehouse.
🗃 Bundle Up Products
Make a combination of deadstock products with related products to tempt your customers and get rid of the deadstock. After all, why not sell two or more products together instead of selling a single one.
Many eCommerce store owners nurture this practice to increase their order value and help deal with your store’s slow-moving & non-selling products. Moreover, the buyers would not mind buying the combo product for a slightly inflated price.
🎁 Send Free Gifts
You can add deadstock products to your customer’s cart as a free gift.
This is an old marketing strategy but works till date cause who doesn’t love free things. Giving such deals help you create good-will with your customers, make them wanna visit again & get ride of the deadstock.
🛍 Host a Clearance Sale
One way out is to host a clearance sale. Put your deadstock on a discount of 60%-70%. What more you can do is set a limited time offer for this sale. You can also set free shipping facility to entice your customers more. Don’t forget to mention that no return or exchange will be applicable to these products.
Thus, using a good inventory management system can help you stay alert & points mentioned above will help you deal with present deadstock.
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Until next time. 👋